There are 5 technical signals need to be use together to form a positive buying signal:
1. 20 days and 50 days simple moving average (MV-20d & MV-50d)
- Share price trading at price above the MV line
- Share price across above the MV line
- MV-20d cut through the MV-50d from below
2. MACD (Moving Average Convergence Divergence)
- When the signal line at above the "point 0", this is a buying signal, indicates that share price will be raising; When the signal line is at below the "point 0 ", this is a selling signal which indicates that share price will be falling down.
- When the blue line cross above the red line, this is a buying signal; When the red line cross above the blue line, this is a selling signal.
3. Slow Stochastic Oscillator
- When blue line move above "point 50", this is a buying signal. This will be accurate especially the line move from "point 20" towards "point 80"; When the blue line move below “point 50", that is a selling signal.
- When the blue line move above the red line, this is a buying signal indicates share price will be raising; When the red line move above the blue line, this is a selling signal, indicates share price will be falling.
4. RSI Reverse ( Relative Strength Index Reversal Index)
- When Share price is at above the RSI line, it is a buying signal.
5. Parabolic SAR ( Stop and Reversal )
- When the share price is at above the Parabolic SAR, this is a buying signal; When the share price is at below the SAR, this is a selling signal.
Remarks:
This is for the use to find a momentum share.
When the share price raise above the strengthening zone and the volume is increasing significantly.